User talk:Marty1970

From TaxAlmanac

controlled group 5500

Marty, thanks for responding to my post a few days ago about the late filing penalty. I am so confused by the controlled group definition when it comes to family atrribution...here's this particular situation, wondering if you could take a look. Is this a controlled group?

husband owns 100% corp 1

husband owns 32% corp 2

wife owns 32% corp 2

adult children (2 of them) own 18% each of corp 2

is this a controlled group?

corp 1 has the retirement plan, husband is the only participant, corp 2 never participated any way in the plan. Total plan assets are 120K, they have been filing 5500 not 5500EZ.

much obliged in advance! LisaLisasig 10:49, 17 March 2009 (CDT)

Marty, Thanks again for your response to the 401(k) loan repayment issue. I took a look at your website. Excellent!!! I took a chance posting here since no one on my state society listserve seemed to have an answer. I've bookmarked your site for future consultation possibilities. In the meantime I will research the reference materials you suggested.

Thank you for the info. Marty. I did research the site you provided and came up with numerous hits on Tribune. None were of the specfic plan my client had his funds in. He was employed for almost 30 years there but has since moved on to an even better job. You are correct, he was offered an annuity, however, in light of the fact he needed to repay the 401(k) loan he took the lump sum. What I had advised him to do last summer was take the hit with the loan as a deemed distribution and let the cash balance plan rollover. I said this knowing the consequences would not be as costly. The way he transacted the distribution he is ending up paying approximately 1k additionally, plus he had to borrow a few thousand to make up for the taxes withheld when they distributed the cash balance plan. I suggested he look into paying the 401(k) and letting it sit until repaid, that was a no go. I also suggested he look into borrowing from the 401(k) after it rolls over, and that was a no. Both suggestions I entirely understood his reasoning. I did tell him he should invest his money and obtain some additional deductions by purchasing a home - he's been renting a townhouse since his divorce several years ago. He has no deductions. He did none of what I recommended. So here we are in April and I know he is upset - he ranted on for several minutes. I am not looking forward to my conversation with him, but I guess that's what I get paid for.

I have bookmarked your site and will keep you in mind for future consult opportunities. I really do appreciate the time you've taken to respond to my dilemna. At least I know I explored every avenue I possibly could to resolve the issue in favor of my client.

Hurricane Ike Distributions

Thank you, Marty. I appreciate your thoughts. I'm going to go ahead and try to call the IRS again. I will post the results when I find out. (Hopefully will find out:)) I hope this client is able to at least avoid the penalty as the Galveston coast was devestated.

Thank you, again.

Nancy.

Thanks again Marty regarding the 5500 question.

Sterncpa 12:58, 26 August 2009 (CDT)

John Sterncpa

Personal question

Not sure if you have any insight, but I applied to be a Revenue Agent with the IRS at the end of May. 1 month later, I got an email that my qualifications were a superior match, but that was the end of June and I have heard nothing. I called and emailed but got no response. I would love to get out of public and work at the Service. I'm strongly opposed to tax cheats and think I would make a great agent. Should I give up or do you know if this is standard procedure?

Thank you!

I just added a note to RP09-27 (and 09-47) referring to 08-50. Also added a link to your post; hope that's okay. Thanks for making sure I wasn't leading somebody down the wrong path.

Trillium 12:22, 3 November 2009 (CST)

401K - continued

Last question Marty - So I just spoke to my client and she is really set on the 401(k) plan simple because the other options have limitations as far as funding. She is also well aware of the fees associated with administering such a plan. Her issue is that if she is not a W-2 employee (schedule C owner) and her emkployee IS a w-2 employee, how would the 401(k) funding work? Does that make a difference? Are there no limitations or requirements that she must (as the owner) fullfill, such as a matching or the like? Thanks for your help!

Could be

I don't disagree, however, there are more places than just the pink notice box these days:

1. This is the note that she would have seen when she created her user name yesterday.
2. I reminded her of the importance yesterday, after her first post.

She was ignoring those earlier things, so I figured I'd get out the big guns before deleting her posts. However, her posts don't necessarily need to be deleted if you think she's at least somewhat on point, so I appreciate the input on that.

Trillium 17:40, 23 November 2010 (UTC)

MPP

Marty, I have a question about a money purchase plan. I have a client that is the only participant and she has been wanting to terminate the Money Purchase Plan. From my research I've determined that all she has to do is, a corporate resolution with an effective termination date, distribute §204(h) notice to herself 45 days before contributions stop, and a summary of material modification also to herself 210 days after the end of the plan year.

My question is basically, how strict are these formalities. If we adopt the change now, could it be as simple as the owner making the decision. Would the change have to be formally adopted by something written by an attorney? Would the IRS care if she didn't formally send herself the required notices?

Ultimately, what I want to know is how serious is it if she rolls the plan over to an IRA and files a final return in for 2011, rather than adopting a resolution now, funding in 2012, and a final return for 2012. Any advice will be greatly appreciated.

TerryTOrahaCPA 14:44, 20 December 2011 (UTC)

Ford & GM LSD when 53-54 rmd already began using SEPP

http://fairmark.com/forum/read.php?2,66556

Marty,

are you familiar with this issue?

Your thoughts would be welcome.

Thanks TerryTerry Oraha 15:18, 9 April 2013 (UTC)

GM / Ford lump sum distribution offer

Hi Marty,

any chance you could share your thoughts on the GM /Ford buyouts. if a taxpayer separated from services age 53 and began taking rmds could they take the buyout when it has not been 5 years and they are not yet 59.5. I think this is a controversial issue because ford and GM amended their plans to allow for this special option. What do you think in light of the link I attached you in the previous message I sent you. There is a PLR that may be somewhat favorable. In the PLR there was an amended plan where LSD's were found to be "independent payments". Let me know if you have an opinion.

Thanks, TerryTerry Oraha 15:18, 9 April 2013 (UTC)

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